U.S. and Chinese investors announced in Los Angeles Tuesday that 200 million U.S. dollars would be invested in a unique trade service provider that will help Chinese manufacturers sell their products directly in the United States.
The Global Trade Center (GTC), invested and wholly owned by Hong Kong Global Trade Center Holdings Co. Ltd., will include four global centers, Los Angeles in the United States, Frankfurt in Europe, Dubai in Africa and the Mideast, and Shenzhen in China. The U.S. center, located in Long Beach, California, is the first to function as an international trade service provider.
Michael Baker, chairman of the board, is the leading investor in the project. He was an associate general counsel of Browning-Ferris Industries, Inc. (NYSE) and led an acquisition program which acquired over 500 companies while he was there.
Baker said there are many manufacturers in China who do not know how to find business opportunities in the United States, and even if they have opportunities to sell products there, they have to go through the dealers. His project is unique: The Global Trade Center will provide service for Chinese manufacturers to come directly to the buyers in the United States.
He said the idea started two years ago, and Long Beach has been chosen as the site for the first center as it is close to Los Angeles.
Baker said the company has invested about 30 million dollars to purchase an old aircraft manufacturing facility owned by Boeing in Long Beach and will remodel it into a trade center. The center will have enough room so that over 10,000 manufacturers from China can display their products. The total investment is estimated at 200 million dollars.
He said the trade center will be a permanent exhibition hall. Exhibitors will have their products on show permanently and do business there with U.S. buyers.
The GTC said in a statement it will facilitate direct transaction between the producer and the retailer, bypassing all middlemen to benefit both sides.
The statement said the GTC will serve only mainstream manufacturers and overseas major retailers, not the middle traders. It will help producers who have large orders as their main objective, with small wholesale orders as supplements.
The GTC will promote "free showroom rent," which means exhibitors do not have to pay rent for booths. It will collect sales and marketing fees as its main source of income, which is different from traditional mart centers. Also, it collects commission only after an order has been secured by the manufacturer.
The GTC said it aims at building the largest manufacturer direct supply center in the world. It plans to accommodate over 10,000 manufacturers in four years, among them 8,000 from China, 1,500 from Asian and European countries, and 500 from the U.S. continent.
It also aims at building the largest one-stop international trade service platform in the world and will sign up hundreds of trade service companies in the field of shipping, customs clearance, warehousing and logistics, quality inspection, trade financing, credit insurance, accounting, legal service, sales and marketing, product development and design.
Henry Hwang, chief executive officer of the GTC, told reporters Tuesday that the Long Beach GTC will also benefit Americans. He estimated that about 3,000 new jobs will be generated locally. With an estimated 20,000 to 30,000 buyers coming to the center daily, it will certainly boost the local economy, he said.
Hwang called it an invention to build a global trade center of this type. So far, no similar trade center has been established, he said, adding there are trade centers in other places, but most of them just provide spaces for exhibitors. His center not only provides space for Chinese manufacturers, it also helps them to find buyers and do business directly, he said.
The GTC has an online portal to provide producers with the same level of complete trade service, an option for those who can't personally visit the GTC showrooms.
Hwang explained that the GTC online portal differs from others as it offers global manufacturers an online presentation of products and business. It also enables professional sales and marketing staff to track and secure orders, receive orders directly from retailers, and cover worldwide retailers in its promotional campaign.
Hwang said this project is privately run, although it has cooperation and support from Chinese government institutions.
The Global Trade Center (GTC), invested and wholly owned by Hong Kong Global Trade Center Holdings Co. Ltd., will include four global centers, Los Angeles in the United States, Frankfurt in Europe, Dubai in Africa and the Mideast, and Shenzhen in China. The U.S. center, located in Long Beach, California, is the first to function as an international trade service provider.
Michael Baker, chairman of the board, is the leading investor in the project. He was an associate general counsel of Browning-Ferris Industries, Inc. (NYSE) and led an acquisition program which acquired over 500 companies while he was there.
Baker said there are many manufacturers in China who do not know how to find business opportunities in the United States, and even if they have opportunities to sell products there, they have to go through the dealers. His project is unique: The Global Trade Center will provide service for Chinese manufacturers to come directly to the buyers in the United States.
He said the idea started two years ago, and Long Beach has been chosen as the site for the first center as it is close to Los Angeles.
Baker said the company has invested about 30 million dollars to purchase an old aircraft manufacturing facility owned by Boeing in Long Beach and will remodel it into a trade center. The center will have enough room so that over 10,000 manufacturers from China can display their products. The total investment is estimated at 200 million dollars.
He said the trade center will be a permanent exhibition hall. Exhibitors will have their products on show permanently and do business there with U.S. buyers.
The GTC said in a statement it will facilitate direct transaction between the producer and the retailer, bypassing all middlemen to benefit both sides.
The statement said the GTC will serve only mainstream manufacturers and overseas major retailers, not the middle traders. It will help producers who have large orders as their main objective, with small wholesale orders as supplements.
The GTC will promote "free showroom rent," which means exhibitors do not have to pay rent for booths. It will collect sales and marketing fees as its main source of income, which is different from traditional mart centers. Also, it collects commission only after an order has been secured by the manufacturer.
The GTC said it aims at building the largest manufacturer direct supply center in the world. It plans to accommodate over 10,000 manufacturers in four years, among them 8,000 from China, 1,500 from Asian and European countries, and 500 from the U.S. continent.
It also aims at building the largest one-stop international trade service platform in the world and will sign up hundreds of trade service companies in the field of shipping, customs clearance, warehousing and logistics, quality inspection, trade financing, credit insurance, accounting, legal service, sales and marketing, product development and design.
Henry Hwang, chief executive officer of the GTC, told reporters Tuesday that the Long Beach GTC will also benefit Americans. He estimated that about 3,000 new jobs will be generated locally. With an estimated 20,000 to 30,000 buyers coming to the center daily, it will certainly boost the local economy, he said.
Hwang called it an invention to build a global trade center of this type. So far, no similar trade center has been established, he said, adding there are trade centers in other places, but most of them just provide spaces for exhibitors. His center not only provides space for Chinese manufacturers, it also helps them to find buyers and do business directly, he said.
The GTC has an online portal to provide producers with the same level of complete trade service, an option for those who can't personally visit the GTC showrooms.
Hwang explained that the GTC online portal differs from others as it offers global manufacturers an online presentation of products and business. It also enables professional sales and marketing staff to track and secure orders, receive orders directly from retailers, and cover worldwide retailers in its promotional campaign.
Hwang said this project is privately run, although it has cooperation and support from Chinese government institutions.
